SOPO
The State-owned, privately-operated (SOPO) system was an economic system devised by historian and political activist Jacob Adelhoch in 2017. The SOPO system developed out of his social democratic thinking, and it involved the usage of public-private partnerships to generate revenue for both the state and the private company. The state would lease public lands and public projects to private companies in exchange for the other companies paying rent, but this privilege would be retractable in the case of excessive capitalization on the side of the private industry. The private industry would be allowed to use public land for as long as the state agreed, generating profits for both the state and the private industry. Description Role of the state ]]Adelhoch, a native of Middletown, New Jersey, devised the idea using New Jersey's public beaches and public parks as an ideal setting for this economic project. The state government would grant contracts to private companies to run state property for either a set amount of time (which could be renewed with the contract), or for an indefinite amount of time (which could be ended if the state decides that the corporation is unfairly taking advantage of the deal, such as degrading the quality of public areas or adversely affecting their visitors). In the case of a public beach such as Sea Bright, the New Jersey state government could lease the land to a real estate company or a beach club. The beach club would be able to establish concessions stands or other venues to attract income, but anything that would adversely affect visitors (such as fees for attending the beach, or pollution) would be prohibited, and would be cause for a repeal of the contract. The state would be able to gather income through the cost of the rent, and it would also benefit from the fact that the company's improvement of the real estate area would attract more tourism to the area, helping businesses grow. The state would no longer have to spend as much money on public works now that a private enterprise was renting one of its public beaches, and the company would take care of the finances and the rent in exchange for immense profit from the visitors. This would allow for taxation to be decreased, as the state would have slightly fewer expenditures. This would also allow for new jobs to be created in the service industry as new food vendors, beach clubs, surfboard rentals, and lifeguard stands were established. This agreement would be the perfect way for the public and private sectors to cooperate, and it could last indefinitely, as the state would always guarantee the private investor that it could protect it from economic failure. Role of the private industry The private industry would benefit from the policy in the same way as the state would. The state would lease its public property to the private investor, which would take care of developing the formerly public property into a worthy investment. The private industry could keep the deal with the state government as long as the industry positively impacted the area in question, i.e. by attracting tourists and investors to the area in question. The private industry could make large profits by acquiring this prime real estate; they could transform the beach into a vibrant hub of activity during the summers, and they could attract new people to a once-calmer area. This would allow for businesses to thrive, and new jobs would be created as a result. This partnership could continue for an indefinite amount of time, and both parties could prosper. Category:Economics